Why Binance is not a perfect exchange to trade cryptocurrency?
Every exchange has its pros and cons, and while Binance is one of the most popular cryptocurrency exchanges at the moment it’s not perfect either. In this article, we will be exploring some potential issues with the Binance platform that you may want to keep an eye on.
We’ll talk about the general limitations of the platform and even stability issues which you might want to be aware of. You can use this information to compare Binance to other platforms and make sure that they offer what you need when trading.
First, we’ll talk about the trading limitations of Binance’s platforms. These are issues which are part of the platform and not really a bug or issue. However, they do present some limitations which could make you change your mind about trading on Binance.
Binance’s trading limitations
The good thing about Binance is that it’s one of the few major exchanges that allows you to trade without having to verify your identity at all. Unfortunately, this does come with some major limitations which are imposed on your withdraw abilities. These limitations are not there with decentralized exchanges.
On a decentralized exchange, you would be able to withdraw or deposit any amount without ever verifying. Though it’s surprising that they allow unverified trading at all seeing as they are a company. However, this also brings us to another big problem with Binance.
No fiat withdrawals
The way that they get around this is that they don’t have any fiat withdrawal options available. This severely limits your options for withdrawing money. At the same time, you can deposit to Binance using both cryptocurrency and credit card.
It makes it difficult to remove your crypto from the market if something bad happens. If you want to transfer your crypto to US dollars or another fiat currency for safety in a depressed market there are many more steps required for you to get there.
Limited order types
They also have very limited order types and you can only place limit or market orders. This is a big disadvantage if you’re a day trader who needs stop-loss orders for protecting your capital and it takes away some major functionality from the exchange.
It’s also not the easiest platform to understand for beginners and some of their tools seem confusing and cluttered. The layout is only so so here and it can take you a while before you learn to use everything.
No margin trading
Binance also does not allow margin trading. That means that if you want to leverage your positions to get more money for trading then you’re out of luck here. You can only trade with the funds that you currently have which is a turn off for many cryptocurrency traders.
This severely limits your ability to make money and if you’re planning to use this for your trades you’ll need to find another exchange to use, unfortunately.
Binance’s stability issues
While Binance prides itself on having speedy transactions, they have had some stability issues recently. An update they released had disastrous effects for many traders, some of which are even demanding compensation for these damages they believe are Binance’s fault.
This update malfunctioned and caused people to not be able to see their trades or to exit positions. Unfortunately, this was also coupled with a big downshift in the market which caused many investors to lose a lot of money if they were trading on Binance at the time.
Other traders have also reported on occasion that there were issues with the login system that prevented them from trading both on the app and the website which is something that you should be aware of.
There was also an issue where APIs were compromised, leading to some users having their assets sold at a loss by a malicious attacker.
Binance is a very popular trading site and that means that it’s a frequent target for attackers who are looking to steal accounts via phishing. If you use Binance you need to make sure to use 2FA and to protect your accounts with your life.
Binance’s support problems
Binance is generally pretty responsive to support but they only offer social and email support. There is no phone number that you can call which is much faster than the other options. While there is a phone number listed somewhere on Google this is a scam number! Do not call it or you will lose everything in your account, they do not have a public phone number for customer support available.
Binance also doesn’t seem to have a live chat help feature unfortunately which leaves you with only some slow contact methods. This isn’t something that you want when your account could be compromised and you need their help.
Customer support can also be understandably slow sometimes because of this. That becomes a serious negative for an otherwise very good exchange, unfortunately.
In closing, while Binance is a great exchange it certainly has its problems. It’s always important to consider the negatives as well as the positives for any cryptocurrency exchange to allow you to choose the best one for your needs.
When choosing the best cryptocurrency exchange you need to weigh the pros and the cons to find one that does what you want. Hopefully, this article has helped you to do that.